Upstart microprocessor maker
will miss its revenue numbers this quarter almost by half and take a charge for extra inventory because of lower shipments in Japan, where most of the company's sales occur.
The company said Wednesday that it sees revenue falling by 40% to 45% from the $18.6 million it brought in during the first quarter of 2001. That puts revenue at about $10.23 million to $11.16 million. The company had told analysts to expect revenue to be flat to slightly higher in the second quarter from the first. A consensus estimate of four analysts expected revenue of $19.55 million, according to
Thomson Financial/First Call
Transmeta said that Japan is now facing the economic weakness that affected other regions earlier this year. Transmeta makes the
chip, a low-power chip that is used in some mobile computers because it produces less heat, and therefore, uses less space. Some of the companies that use Transmeta chips include
The semiconductor industry has been under pressure since last fall as sales of personal computers have weakened amid light consumer demand. Transmeta lost 10 cents a share last quarter and is expected to lose 11 cents a share in the second quarter, according to First Call. The company, which went public in November, isn't expected to turn a profit until the fourth quarter of 2002.